Risk Mitigation Strategy Using the House of Risk (HOR) Method for Organic Farming Supplier in Sustainable Supply Chain

Author(s):  
Elisa Kusrini ◽  
Nurul Aini ◽  
Anindita Rahmalia Putri ◽  
Billi Syufrian
Author(s):  
Asep Ridwan ◽  
Kulsum ◽  
Vivi Ambarwati

Bagi umat Islam, kehalalan produk pangan merupakan hal yang penting. IKM Sate Bandeng yang berlokasi di Kota Serang Provinsi Banten mempunyai risiko terhadap kehalalan produk di sepanjang supply chain IKM tersebut. Penelitian ini bertujuan untuk merancang mitigasi risiko kehalalan pada sistem supply chain IKM Sate Bandeng dengan metode House of Risk (HOR). Penelitian dimulai dengan mengidentifikasi kejadian risiko, menganalisis sumber risiko dan berpotensi terhadap kehalalan produk. Kemudian urutan prioritas mitigasi risiko dievaluasi terhadap produk halal dan dilakukan rancangan mitigasi risiko terhadap kehalalan produk tersebut. Penelitian ini menggunakan metode Supply Chain Operations Reference (SCOR) untuk pemetaan aktivitas. Metode HOR digunakan untuk identifikasi, analisa, dan perancangan strategi mitigasi risiko. Penelitian dilakukan dengan cara observasi, wawancara, dan penyebaran kuesioner. Dari hasil penelitian diperoleh 22 kejadian risiko, 18 sumber risiko, dan 9 prioritas rancangan strategi mitigasi risiko. Beberapa prioritas rancangan mitigasi risiko adalah merumuskan sejumlah aktivitas 5R dan penggunaan sarung tangan saat melakukan proses produksi; melakukan training rutin kepada semua pekerja tentang proses halal dan good manufacturing practices (GMP); dan menyusun SOP pembuatan sate bandeng yang halal dan higienis. IKM Sate Bandeng dapat merancang mitigasi risiko kehalalan produk sehingga konsumen menjadi lebih yakin dalam membeli produk yang halal.   For Muslims, the halal of food products is important. Sate Bandeng IKM which is located in Serang City, Banten Province has a risk of halal products along the IKM supply chain. This study aims to design halal risk mitigation in the Sate Bandeng IKM supply chain system with the House of Risk (HOR) method. The study begins by identifying risk events, analyzing the source of risk and the potential for halal products. Then the priority sequence of risk mitigation is evaluated on halal products and a risk mitigation design is carried out on the halal product. This study uses the Supply Chain Operations Reference (SCOR) method for mapping activities. The HOR method is used to identify, analyze, and design risk mitigation strategies. The study was conducted by observation, interviews, and distributing questionnaires. From the results of the study obtained 22 risk events, 18 risk sources, and 9 priority risk mitigation strategy designs. Some priorities for the risk mitigation design are formulating a number of 5R activities and the use of gloves during the production process; conduct routine training to all workers on halal processes and good manufacturing practices (GMP); and arrange SOP for making halal and hygienic milkfish satay. IKM Sate Bandeng can design risk mitigation of halal products so that consumers become more confident in buying halal products.


2017 ◽  
Vol 24 (1) ◽  
pp. 2-23 ◽  
Author(s):  
Surya Prakash ◽  
Gunjan Soni ◽  
Ajay Pal Singh Rathore ◽  
Shubhender Singh

Purpose The purpose of this paper is to present a methodology to analyze the risks present in perishable food supply chain and to determine the most effective risk mitigation strategies. It is achieved by understanding the dynamics between various risks in perishable food supply chain and modeling them using interpretive structural modeling (ISM). Design/methodology/approach Four categories and 17 types of risk are established from literature and conducting brainstorming sessions with managers/engineers in Indian dairy firms. A methodology is proposed using ISM, risk priority number and risk mitigation number to prioritize risk mitigation strategy decisions for the dairy industry. Findings For a perishable food supply chain, risk positioned at lower levels (levels 1 or 2) in the hierarchy should be targeted first, while formulating mitigation strategies. To investigate further, risk- enabling factors which are identified for an Indian dairy firm for these levels 1 and 2 risks and mitigation strategy prioritization show that supplier side risks are more dominant followed by market risks and process risks. Research limitations/implications This proposed methodology has not been statistically validated or empirically tested, and factors taken are in the Indian context, but the authors believe that the study is highly relevant to other markets as well because the ISM-based analysis is for generic perishable food supply chain environment. Practical implications This study provides a useful approach to managers/decision makers to identify, analyze and prioritize risk in the supply chain. It also provides insights into the mutual relationships of supply chain risks which would help them to focus on the effective risk mitigation strategies formulation. The study provides the insights to benchmark and risk management in the dairy industry environment with priority considerations. Originality/value This paper provides an integrated approach to identifying, quantify, analyze, evaluate and mitigate the risks of perishable food (in the dairy environment) in the Indian context.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Muhammad Hashim ◽  
Muhammad Nazam ◽  
Muhammad Zia-ur-Rehman ◽  
Muhammad Abrar ◽  
Sajjad Ahmad Baig ◽  
...  

Abstract Sustainability-related risk and vulnerability management have attained significant attention from academia and industry. Manufacturing industries in developing countries such as Pakistan are under severe economic pressure and striving to boost sustainable supply chain practices for achieving business excellence. In this context, the objectives of the present research are to examine the critical supply chain risks associated with sustainable development goals, namely social, economic, and environmental factors. The failure mode and effect analysis (FMEA) technique is employed for categorizing the risk factors and Pareto analysis for highlighting the more crucial and risky factors. For this purpose, a large-scale survey was carried out in the textile industries of Pakistan to develop a risk mitigation model for sustainability-related risks and vulnerability in a textile supply chain (TSC). It captures the input expressions of experts for risk factors, namely severity (s), occurrence (o), and detection (d) for calculating the risk priority numbers (RPNs) of identified alternatives. The results depict that endogenous environmental risks categorize as the most significant for the textile manufacturing industries, and the interfaces between the various risks associated with sustainability-related are also found very high. This study would be a toolkit for the industrial managers and policy-makers for creating sustainable manufacturing culture on organizational premises.


Jurnal METRIS ◽  
2021 ◽  
Vol 22 (01) ◽  
pp. 57-66
Author(s):  
Christine Natalia ◽  
Chendrasari Wahyu Oktavia ◽  
Welhelmina Vince Makatita ◽  
Ferdian Suprata

Currently, the resilience of the company is not separated from the strength supply chain network. Without this network, so the business process will not run well. But the strong supply chain network became vulnerable to risk. It caused by complexity and a highly dependent supply chain network. These risks need to minimize. The method that can be used to minimize risk with integrating the house of risk method and Analytical Network Process. The purpose of these integration methods to identification and recognized interrelationships between risk agent’s mitigation strategies, so the effect of event risk can be reduced. And then, by looking strategies can reducing costs incurred by the company and efficiency of risk agent’s mitigation strategy. Based on the results of House of Risk stage 1, there are 25 causes of risk that need to mitigate. The risk mitigation strategies that obtained to minimize the causes of risk, are then processed by the Analytical Networking Process (ANP) method. Based on the results of the Analytical Networking Process (ANP) method, there are two risk mitigation strategies. House of Risk stage 2 has applied to measure the efficiency and the level of difficulty of these two risk mitigation strategies. The results showed that the best mitigation strategies are conducting training and measuring company’s performance.


2018 ◽  
Vol 218 ◽  
pp. 04023 ◽  
Author(s):  
Maria Ulfah ◽  
Dyah Lintang Trenggonowati ◽  
Fadila Zahra Yasmin

Slaughter House PT X is a company engaged in the production, trade, and distribution of chicken meat that having a role to provide the needs of raw material in a form of fresh chicken meat in the chicken meat processing industry. However, this company has the potential to experience a variety of supply chain risk that can disrupt the company’s business processes. The purposes of this study are to identify risk events that have been potentially occurred, identify priority risk agent based on Aggregate Risk Potential (ARP) value, and determine the priority sequence of a risk mitigation strategy in Slaughter House PT X. This study uses the Supply Chain Operation Reference (SCOR) to mapping the company’s supply chain activity. Thereafter House of Risk (HOR) method is used to identify, analyze, evaluate, and designing mitigation strategy to minimize potential occurrence of risk agent. The results of the study showed that there are 33 risk events and 32 risk agents identified. Then, based on the result of risk evaluation, there are 15 priority risk agents for mitigation action. There are 11 proposed mitigation strategies to be implemented in Slaughter House PT X.


2018 ◽  
Vol 4 (2) ◽  
pp. 17
Author(s):  
Retno Astuti ◽  
Rizky Lutfian Ramadhan Silalahi ◽  
Rizky Amalia Rosyadi

The study aimed to determine the order of priority risk agents and risk mitigation strategies that should be implemented by “Wijaya Buah” as a fruit wholesaler. This research used 2 phases of House of Risk (HOR) methods. HOR I was used to identify risk events and risk agents in mangosteen business based on the mapping of business activities using the Supply Chain Operations Reference (SCOR) version 9 level 2. HOR II then was used to determine the risk mitigation strategy based the relation between the risk mitigations and the risk agents. The results of the study showed that 19 risk events were identified with 27 risk agents. Based on the calculation of Aggregate Risk Potential (ARP), 1 risk agents became priority to be designed for mitigation strategies. In order to reduce the incidence of risk agent, 3 mitigation strategies should be applied in “Wijaya Buah”. Keywords: HOR; Mangosteen; Mitigation; Risk; SCOR


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